Duty free limit rises in December

http://news.bbc.co.uk/go/rss/-/1/hi/uk_politics/7204386.stm

Version 0 of 1.

The duty free allowance for holidaymakers travelling to the UK from outside the European Union is set to more than double to 430 euros (£320).

But the increased tax free limit will only apply from 1 December this year.

Tory Lord Marlesford said the new level might cause confusion because Gordon Brown, as chancellor, said in 2005 and 2006 he wanted it to rise to £1,000.

But Deputy Chief Whip Lord Davies said "other countries took different views" when the plan was put to the EU.

He said EU finance ministers agreed the 430 euros tax-free allowance for travellers entering the EU by sea and air on 28 November 2006.

Escape prosecution?

However, the EU directive which implemented the change was only adopted on 20 December 2007, meaning the earliest date the increase could be introduced was 1 December, this year.

During his Budget speech in 2005, Mr Brown said he had written to the European Commission "proposing that the tax free limit on goods brought into the UK from outside the EU should rise from £145 to £1,000".

DUTY FREE ALLOWANCE 200 cigarettes or 100 cigarillos or 50 cigars or 250g tobacco 2 litres of still table wine 1 litre of spirits or strong liqueurs over 22% volume or 2 litres of fortified wine, sparkling wine or other liqueurs 60cc/ml of perfume 250cc/ml of toilet water £145 worth of all other goods including gifts and souvenirs

Speaking in the Lords, Lord Marlesford said Mr Brown repeated that proposal in his 2006 Budget - but it was not mentioned the following year.

He asked if a traveller from outside the EU who goes through the green channel with up to £1,000 in goods could escape prosecution if they "genuinely, if mistakenly, took Gordon Brown's Budget speech at face value".

Lord Davies of Oldham said while that was an "interesting proposal", Mr Brown, as chancellor, had simply been "putting forward a proposal for discussion in the European Community".

"A number of other countries in the European Union took different views and it has taken this long to reach agreement," he said.